Thailand’s Finance Minister Pichai Chunhavajira has outlined sweeping reforms aimed at revitalizing the country’s capital markets.
Speaking at an investment seminar on Monday, Pichai said the government will amend key investment regulations and Securities and Exchange Commission (SEC) rules to unlock capital flows and attract broader investor participation.
Currently, life insurance firms and large institutional funds face heavy restrictions on stock market investment, with many only allowed to hold government bonds. Pichai indicated these rules are outdated and limit potential market growth. “We must unlock investment restrictions that are holding back capital market expansion,” he said.
Regulatory Reforms and Digital Finance Integration
The government will also streamline rules around treasury stock, making it easier for businesses to engage in share buybacks.
Meanwhile, the SEC has already introduced civil and criminal penalties for naked short selling and is reviewing program trading practices to ensure fairer markets.
A major development in regulatory power is also under discussion. The Finance Ministry is drafting a law to empower the SEC to submit major market offense cases directly to prosecutors, and it is evaluating whether the SEC should operate with independent or shared investigative authority with law enforcement.
Pichai also addressed digital innovation, spotlighting G-Tokens — digital tokens that enable retail investors to buy Thai government bonds in micro units, up to six decimal places. These tokens are expected to yield higher returns than traditional bank deposits and are part of a broader push to enhance global recognition of Thai sovereign debt instruments.
On the cryptocurrency front, Pichai acknowledged its expanding role in global finance. He noted that while Thailand has two overlapping legal frameworks — the Royal Decree on Digital Assets and the Securities and Exchange Act — investors often overlap across both sectors. He also referenced how crypto is being integrated into retail payments and credit card systems in other countries, hinting that Thailand may explore similar innovations in the future.
The wide-ranging reforms signal a pro-market stance by the Thai government, aiming to increase investor confidence and position the country as a more attractive destination for both domestic and international capital.
Source
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/thailand-to-revise-investment-rules-in-bid-to-boost-capital-markets/